Prudential stocks collapse amid Hong Kong stock supply
Top News: Prudential seeks to strengthen its base of Asian investors
Prudential has revealed its intention to raise funds by issuing new shares in Hong Kong as it seeks to grow its shareholder base in Asia and improve the liquidity of its shares.
The company had said it was considering raising new capital after finalizing the split of its U.S. operations earlier this month. Prudential has now decided to increase its issued share capital to up to 5%, or up to 130.8 million shares, in Hong Kong, and has said it could issue up to 32.7 million shares. new actions depending on demand.
The final price is expected to be determined this Saturday, but will be capped at HKD172. At that price, Prudential plans to raise around HKD 22.5 billion, or roughly $ 2.9 billion.
The new shares are expected to start trading on the main board of the Hong Kong Stock Exchange on Monday, October 4.
Prudential currently has a primary listing in London and Hong Kong, with secondary listings in Singapore and New York.
Prudential said the proceeds from the stock offering would be used to improve its financial flexibility by buying back $ 2.3 billion of high interest debt. The remaining funds will be invested in Asia and Africa, where Prudential believes the potential for long-term growth is greatest. Prudential aims to grow its customer base in the two regions from 17 million today to 50 million by 2025, according to reports from Bloomberg.
“The board believes that there are clear benefits for the group and for its shareholders as a whole to increase its Asian shareholder base and the liquidity of its shares in Hong Kong and intends to take these factors into account in awarding the placement, ”says Prudential.
What next for the Prudential share price?
The Prudential share price has been trading in a bullish channel since late July. Earlier this month, the price broke below the channel before finding support on the 50 sma.
The breakout of the 200 & 50 sma combined with the bearish MACD maintains the seller’s hope for a further decline.
Immediate support can be seen at 1330p July 8 low, ahead of 1292p July low. A breakout below could open the door for a sell-off.
Any rally in the share price should pick up 1440p at the confluence of the 50 and 200 sma, which could prove difficult to resolve.
Energy crisis: actions to watch
The weekend was dominated by news of an energy crisis, sparked by soaring wholesale prices for natural gas and threatening several major industries.
A perfect storm of growing demand and limited supply has caused wholesale gas prices to skyrocket, raising concerns as the UK enters autumn and nears winter. Demand is on the rise as the seasons change and the economy continues to recover from the pandemic, while supplies are proving inflexible thanks to low gas storage, high carbon prices and disruptions in deliveries.
The immediate sector to watch is that of public services. A combination of rising wholesale prices and price caps that protect millions of dollars on standard variable rates means that many simply cannot cope with market conditions right now.
The government is currently holding emergency talks to help small vendors collapse, but some have already faltered. This should reduce competition for bigger and more established players like Centrica’s British Gas, which was down 1.1% this morning to 50.53p. However, it could also mean that fewer deals are available for price comparison sites such as Moneysupermarket.com, which was down 3.7% this morning to 231.5p.
The problems will have a noticeable ripple effect on other industries, such as the meat market. Industry representatives have warned that there is a shortage of carbon dioxide which is used to stun animals before slaughter and to package meat products. Traditionally, this CO2 is produced as a by-product of fertilizers, but many factories have had to shut down or stop production due to rising gas prices. Sky News reported that there is now a 60% CO2 shortage in the UK as a result, and said those in Europe are struggling as well. This will put the tastes of the sausage maker Cranswick (down 1.9%) and hose manufacturer Devro (down 1.1%) in the spotlight today.
SSE says there is no plan to divide the business
Meanwhile, SSE issued a statement this morning that “there has been no decision to dismantle” the company.
A number of media reports surfaced last week, suggesting that SSE was facing increasing pressure to create its renewable energy division in order to focus on its status as one of the largest electricity providers in the world. country. It comes after activist investor Elliott Advisors built a significant stake in the company.
“There was no decision to dismantle the SSE group. The board of directors remains fully focused on the strategic choices that will generate shareholder value from the wealth of net zero opportunities that the company creates, ”SSE said in a statement this morning.
SSE said its two companies have great growth potential and complement each other. He said he is “building more offshore wind than any company in the world, expanding internationally and investing in the low carbon power infrastructure that society needs.”
“We have made excellent progress with our clear net-to-zero alignment strategy, focused on power grids, renewables and other carefully chosen businesses that help provide low-carbon power infrastructure including the government and society at large need it. SSE is the national champion of low carbon energy in the UK, serving our shareholders and society and we look forward to informing investors of our plans to accelerate growth and create value in on time, ”said Managing Director Alistair Phillips-Davies.
SSE shares were down 0.2% this morning at 1636.0p.
Wilmington resumes payments after difficult year
Wilmington restored its dividend and said it remains encouraged by current trading after successfully digitizing its business during the pandemic, allowing it to post a resilient performance during a difficult year.
Revenue was stable year over year at £ 113.0 million for the year ended June and organic growth increased 3%. The company suffered when the lockdown prevented it from offering face-to-face training or hosting events, but it moved quickly to digitize its products, as evidenced by the fact that non-event revenues from its Information & Data and Training & Education divisions have improved year on year. -year.
Adjusted profit before tax – its measure of overall profit – increased 27% to £ 15.0million thanks to a focus on reducing costs and improving efficiency by moving its business online . Still, he reported a pre-tax loss of £ 2.0million to net income, after falling from a profit of £ 6.4million last year.
The performance prompted Wilmington to reinstate its dividend after suspending payments during the pandemic. It will pay a final dividend of 3.9 pence, bringing the total payout for the year to 6.0 pence.
“We have continued to refine and integrate our digital capabilities across the business. This reflects our ambition to create a fully digital business while retaining the flexibility to offer our customers face-to-face and hybrid solutions, ”said CEO Mark Milner. “These strong results with profitability up 27% demonstrate the continued and growing demand for our information and data products, despite the disruption caused by the pandemic.”
“We are now at an inflection point with a streamlined portfolio and are well positioned to address large and growing markets that are increasingly online,” he added.
Wilmington said he was encouraged by the trading in the first two months of the new fiscal year and said both revenue and earnings were as expected.
Wilmington shares were down 1.7% this morning to 220.1p.
Redde Northgate gathers momentum with new contracts
Redde Northgate said it has signed a number of new contracts for its mobility platform, building on the momentum launched this year.
“Since our last update on July 7, the company has signed a number of significant new multi-year contracts for our mobility platform services that will take effect in mid-calendar year 2022. These new contracts leverage products and services from across the group and underscore the value of our growing, unique and unmatched platform of mobility solutions, which we believe can be significantly expanded, ”the company said.
The latest update came when Redde Northgate released its full year results for the year through the end of April 2021, revealing that underlying revenue and earnings have both jumped by more than 50%.
The update came ahead of Redde Northgate’s annual general meeting later today. He said he would release interim results for the six months through late October, early December.
Redde Northgate shares rose 2.1% this morning to 430.5p.
Keywords Studios appoints new Managing Director
Keywords Studios has announced that Bertrand Bodson will take over as the company’s new CEO in early December.
Keywords Studios shares were down 2.2% at the start of trading this morning at 3032.0p.
The company, which provides support and services to the video game industry, has been on the hunt for a new CEO since Andrew Day presented his retirement plan in June.
Bodson joins Keywords Studios from global healthcare giant Novartis, where he was Chief Digital Officer since 2018 and led the company’s digital transformation. Previously, he also worked as Digital Director and Marketing Director at Argos, which is part of Sainsbury’s, helping to lead the catalog store integration into the UK supermarket chain.
Bodson is currently non-executive at Tesco and Wolters Kluwer.
“Bertrand brings an ideal skill set to lead our ambitious international business, given the breadth of his experience in developing and executing growth strategies and creating strong cultures in some of the world’s largest companies. . This expertise will be invaluable as we continue to expand across multiple jurisdictions to solidify our position as a “benchmark” scale supplier within our industry, on a global scale, ”said President Ross Graham.
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